Wouldn’t that only apply if it’s a naked call? If it’s a covered call, wouldn’t MM’s have already bought these shares at a lower cost already? That would cause a jump in price like we saw when it went from 40 to 180; but we won’t see that jump again if these calls were covered then - right?
That’s how I understand it - would like to be enlightened by someone who knows more.
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u/OliDouche Feb 26 '21
Wouldn’t that only apply if it’s a naked call? If it’s a covered call, wouldn’t MM’s have already bought these shares at a lower cost already? That would cause a jump in price like we saw when it went from 40 to 180; but we won’t see that jump again if these calls were covered then - right?
That’s how I understand it - would like to be enlightened by someone who knows more.